Robbins LLP: Pingtan Marine Enterprise Ltd. (PME) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of Pingtan Marine Enterprise Ltd. (NASDAQCM: PME) has filed a federal securities fraud class action complaint in the U.S. District Court for the Central District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between May 14, 2013 and November 6, 2014. Pingtan is an ocean fishing company, with 126 fishing vessels and a wide range of customers located in the Peoples Republic of China.
Pingtan Is Accused of Failing to Properly Account for Twenty Fishing Vessels
According to the complaint, shares of Pingtan fell $0.84 per share, or 25%, to close at $2.47 per share on June 13, 2014, following publication of the article “Fishy Business At Pingtan Marine Enterprise” on SeekingAlpha.com. The article questioned some of the related party transactions, specifically the ones involving entities controlled by Chief Executive Officer Xingrong Zhuo and/or his relatives. On November 6, 2014, the company’s stock dropped $0.10, or approximately 7%, to close at $1.29 per share after the company revealed that it failed to properly account for twenty fishing vessels leased from a related company. As a result of this error, Pingtan issued financial statements that were materially false or misleading and will restate financial statements for years ending December 31, 2012 and 2013, and for periods ending March 31, 2013 and 2014, as well as June 2013 and 2014.
Pingtan Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.